U.S. Sen. Marco Rubio held a press conference at Gatorland, an Orlando tourist attraction, on Friday to denounce the Affordable Care Act for putting the employer in the position of offering more comprehensive coverage or laying people off. But the Rubio press release didn’t really explain why the premiums will go up.
The answer: The law requires insurance policies to meet the “minimum essential benefits” set by the government.
Historically, many tourist-related businesses such as restaurants and hotels have provided skimpy products, if any. The law requires that employer coverage at a minimum cover at least 60 percent of expenses, as actuaries figure it. This Wall Street Journal Q&A provides more information.